It’s over 90 degrees in NorCal, so much for fall. Also, US jobless claims held near recent lows, increasing only a bit to 207k for the week. It’s still hot out there, folks. Tomorrow, we’ll see the mo employment report.
Per CNBC, the 10-yr UST px is down -46% since March 2020. As we mentioned before, its yield hit a 16-yr high earlier this week. Bloomberg notes that it may be hard for the Fed to land the plane on the Hudson. Having a broken Congress won’t help things, as deficit concerns continue. Want to compare the Treasury meltdown? Our fearless media have got you covered: Bloomberg, FT, Reuters.
Peak Oil. Who knew those two words would be so controversial. But the IEA says we’ll have peak oil demand by 2030, so participants have to reduce investment/supply and focus on renewables. Doesn’t seem realistic, though, when their models assume daily oil demand will be down -25% in 7 years….when during the pandemic demand was only down -20% (and the world basically stopped). OPEC is obviously focused on investing in oil and didn’t like the IEA’s forecasts.
Its Sep sales were in line with expectations. Those $2k gold bars are a hit. Remember, limit 2 per customer when you’re out getting your Kirkland maple syrup. But is everyone on Ozempic? Could that change Costco’s fate? Competitor Walmart reported that GLP-1 obesity drugs are already having an impact on food demand, per Bloomberg.
The hacking group behind the recent Clorox security breach seems to be the same one behind those at the casinos (e.g., MGM, Caesars), per Bloomberg. You know these heavyweights have folks scouring the Earth. Wouldn’t want to be them.
Constellation Brands beat on top and bottom lines, due to strength in its Modelo brands. Modelo Especial is still the best-selling brand in the US beer category.
Almost 30% of suppliers to the big auto co’s reported that they laid off workers due to the UAW walkout, and >60% plan layoffs by mid-month.
Rivian declined ~-16% after the EV co reported plans to issue $1.5bn in convertible debt while reporting a prelim 3Q23 rev figure. Investors had expected a raise in the back half of 2024, because the co expects to burn cash over the next 2 years. Given that the stock is up >80% since Mar’s convert offering, the company probably figured it should hit the window while it’s open.
It may be a safe bet to bet on big tech with piles of cash. The buyback windows start opening soon, and the companies hadn’t spent as much earlier this year.
